Under section 22 of the Pharmacy Business Ownership Act 2024 (PBO Act), a third party cannot do, or purport to do, any of the following:
- control how pharmacy services involving medicines are provided to the public
- restrict the types of medicines or health services the business may provide to the public (a health service includes, for example, the Queensland Needle and Syringe Program service, an opioid dependency treatment program service, or a sexual or reproductive health service)
- require medicine for the business to be bought from a particular supplier
- impose a sales target for the business in relation to a particular medicine.
The focus is on control that impacts how a business provides services relating to medicines and public health.
Section 22 does not apply to an employee of the business. Section 22 also makes clear the types of legitimate activities that are not prohibited, particularly requirements about:
- opening hours
- advertising, branding, product displays or other marketing activities
- information technology systems
- staff training
- staff uniforms.
Consequences of inappropriate third party control
If a pharmacy business has a contract, agreement or arrangement giving inappropriate control to a third party, the provision in the contract, agreement or arrangement is void.
A party to the contract, agreement or arrangement (other than the owner), may commit an offence with a maximum penalty of 200 penalty units.
When deciding if a person is a fit and proper person to own a pharmacy business, the Council must have regard to whether the person is a party to a contract, agreement or arrangement which gives a third party inappropriate control, that is, control which is prohibited under section 22(3) of the PBO Act. This means that the Council may decide not to grant a pharmacy business licence to a person, if the person is party to an agreement giving a third party inappropriate control over the pharmacy business.
Contract, agreement or arrangement reviews
The Council may request documents to help determine if the person is a party to a contract, agreement or arrangement which gives inappropriate control to a third party.
Under section 74 of the PBO Act, the Council may appoint an appropriately qualified person to review the document for the purposes of determining if the person is party to an agreement that gives inappropriate control to a third party.
The Council may by notice to the person, ask the person to pay to the Council the fee prescribed by regulation for having the reviewer carry out the review and prepare a report. The reviewer must prepare a report for the Council within 60 days.